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Credit Info Desk
Welcome to the Credit Info Desk. If you have a question about credit, just look below!
- How is an interest rate calculated?
An interest rate for a credit card is usually the 'prime rate' (a standard rate used by most instituions that fluctuates based on the economy) plus a constant rate decided by the individual lender. The result is your 'Annual Percentage Rate' (APR). The APR is the percentage of interest will be charged on your balance every year. Since credit cards usually charge you interest on a monthly basis, the APR is divided accordingly and applied to your balance every month. Even a low APR can produce major interest charges if you only pay the minimum balance each month. Be sure to reduce your debt by paying off as much as you can afford.
- How do I start rebuilding my credit?
The first step to rebuilding your credit is to take control of your finances. Start a budget. Your credit will never improve if you can't handle your own cash flow.
The second step is to take control of your credit report. If you don't already have a copy, you can get one quickly and easily from
CreditReporting.com ,
30-Second Credit Report
 ,
or for free at iCreditReport.com.
You may be able to delete some negative items from your credit report. Download the Credit Repair Kit for help with this.
The next step is to prove to lenders that you are capable of handling credit. Unfortunately, the only way to do this is to get a line of credit in some form (a credit card or a loan). If you already have poor credit, you will be considered a high risk, and have a higher interest rate.
Usually, the cheapest way to go about it is to get a high interest credit card, and pay off your balance in full every month. That way, you rebuild your credit without incurring high interest charges.
- What is a credit rating?
A credit rating is a published ranking, based on detailed financial analysis by a credit bureau, of one's financial history, specifically as it relates to one's ability to meet debt obligations. The highest rating is usually AAA, and the lowest is D. Lenders use this information to decide whether to approve a loan.
- Where do credit reports come from?
Credit reports come from something called a 'credit bureau', a private company that compiles information about your credit history to sell to lenders, or anyone else interested in your credit history (such as an employer or potential landlord).
- How can I find out what's on my credit report?
You can request a copy of your credit report from any of several sources.
CreditReporting.com,
30-Second Credit Report
,
or iCreditReport.com are all good options. iCreditReport is even free!
Credit Reports are usually pretty inexpensive. In some states, they're even free. Check with the bureaus to find out about your area. You simply need to provide them with some information, and you're set!
- What should I do if I find a mistake in my credit report?
If you feel that there is an error in your credit report, contact the credit bureau that issued the report, and let them know. They have services set up for such an issue. If you can't resolve the issue with the credit bureau, take it up with the creditor.
- Why should I establish good credit?
To make any expensive purchases (like a house or a car), you either have to have enough cash to purchase it, or you will have to get a loan of some sort. The better your credit, the less of a risk you are for the loan company, and the lower your interest rate will be, saving you thousands of doallars or more in the long run.
- Do I need to obtain credit to rebuild my credit?
Unfortunately, yes. On the positive side, though, through obtaining credit cards, and paying off the balance in full every month, you can rebuild your credit without incurring high interest charges.
You may also be able to delete a few negative items from your credit report with the Credit Repair Kit.
- How many credit cards do I need?
It all depends. Some say that you don't need more than one. Others say that it's good to have several. Can you trust yourself with credit? If not, get only one good card, and lock it away when you're not using it. If you like benefits, you can earn all sorts of great things, including travel benefits, cash back, and prizes. Using several credit cards can really pay off.
To put it simply, there is no correct number of credit cards. It depends on what you need them for.
- How long does it take to rebuild credit?
It usually takes a few years to rebuild credit to the point of qualifying for a good credit card or small loan. It can take 4-5 years to rebuild it to the point where you can qualify for a large loan such as a mortgage.
Still have a question........?
Don't hesitate to contact our Customer Service Center, 24 hours a day, at customerservice@creditcardshack.com.
Our staff will be happy to assist you right away.
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